Employee stock options : Encouraging employees to purchase part of your business at a discount is a powerful way to help them cultivate a sense of ownership in your company and their personal work.It’s important to determine which benefits fit into the company culture and budget while enhancing productivity. Smaller businesses may offer a combination of these and other attractive yet more economical provisions. These include health insurance, family and medical leave, workers’ compensation and retirement savings plans. ![]() ![]() Some fringe benefits are so widely available that many workers consider them a normal part of a compensation package. For instance, if a business offers child daycare through a contracted service, the business is the provider and the employees’ dependents are the recipients of the fringe benefit. The recipient of a fringe benefit can be a person who performs services or that person’s family member. This is true even if a third party provides the benefit to employees. Fringe benefit rules also apply to individuals who enter an agreement not to compete or not to perform services.Ī business that furnishes a fringe benefit is the provider for tax purposes. These services may be rendered by an employee, independent contractor, partner or director. IRS Publication 15-B defines a fringe benefit as a form of compensation in addition to a wage or salary for services performed.
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